Eurozone industrial production stepped up in August as output increased in major factory sectors underpinning hopes for a positive contribution to GDP growth. Data published by Eurostat, Europe’s statistics office, showed that industrial production expanded by 1.6 per cent in August from July when it fell by a revised 0.7 per cent. Economists estimated a growth in output of 1.5 per cent.
Energy and capital goods production rose by 3.3 and 3.5 per cent respectively. Durable consumer goods output was up 4.3 per cent, non-durable consumer goods output fell 0.6 per cent and intermediate goods increased by 1.4 per cent. On an annual basis, industrial production grew by 1.8 per cent in contrast to a decline of 0.5 per cent in July.
In the meantime, the Council of Mortgage Lenders (CML) said last week that UK house purchase lending surged in August. Borrowing for house purchases stood at £12.2 billion, a rise of 14 per cent on a monthly basis and 11 per cent on a yearly basis. First-time buyers’ borrowing increased to £5.1 million, up by 13 per cent from July and rose by 24 per cent compared to a year ago.
Home movers borrowed £7.1 bn, a 15 per cent rise from July and three per cent from the same period last year, representing 34,200 loans. “House purchase activity bounced back from a dip in July, reflecting resilience in first-time buyer activity,” CML head Paul Smee said.
In Germany, a survey published last week showed that German economic confidence has improved strongly in September. The Mannheim-based Centre for European Economic Research said its ZEW Indicator of Economic Sentiment climbed to a four-month high of 6.2 from 0.5 the previous month, exceeding economists’ estimates of 4.0. The latest reading was the highest since June’s 19.2. The ZEW survey on the current economic situation climbed to 59.5 from 55.1 a month ago and above the consensus of 55.5. The latest score was the highest since January’s 59.7.
This report was compiled by Bank of Valletta for general information purposes only.